Goldman Sachs to pay $500 million to settle 1MDB shareholder lawsuit
Goldman Sachs has agreed to pay $500 million to settle a long-running shareholder lawsuit tied to Malaysia's 1MDB scandal. The deal marks the bank's largest private-litigation payout linked to the matter.
Goldman Sachs has agreed to pay $500 million to settle a long-running shareholder class action tied to Malaysia's 1MDB scandal. The deal, submitted to a US federal court for approval, marks the bank's largest payout in private litigation linked to the matter. Plaintiffs had argued Goldman concealed risks from investors when it arranged three bond issuances for 1MDB.
The scandal involved the diversion of roughly $4.5 billion from Malaysia's sovereign-investment fund between 2009 and 2014 into luxury real estate, art and entertainment ventures. Former Malaysian Prime Minister Najib Razak was convicted of corruption in 2022. Goldman Sachs previously reached a $2.9 billion settlement with the US Department of Justice and agreed to pay $3.9 billion to the Malaysian government.
The bank said the settlement is intended 'to put an old matter behind us' and refocus on core operations. Goldman Sachs shares slipped 0.8% in regular trading after the announcement. Analysts said closing the litigation will reduce reputational overhang but is unlikely to materially affect forward margins.
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